KiOR raising millions to expand plant capacity

KiOR Inc. (Nasdaq: KIOR) said Thursday it is pursuing plans to double production capacity at its Mississippi cellulosic fuels facility in a $225 million expansion plan.

Pasadena-based KiOR said it had already received financing commitments from Khosla Ventures and the firm's principal, Vinod Khosla, for up to $50 million toward the cost of the project, that would include construction of a second production facility at its Columbus, Miss., location. Khosla Ventures is already a key investor in KiOS.

In a statement, KiOR said it could break ground within 90 days of raising enough equity to start the project, which would take 18 months to complete.

"We believe that the Columbus II project also enables KiOR to continue to execute on our long-term business plan consisting of larger, standard scale commercial production facilities," said Fred Cannon, KiOR president and CEO, in the statement.

Added investor Vinod Khosla, "I am more excited than ever about KiOR's long-term business prospects … I remain convinced that biofuels are necessary for America's prosperity and security."